Tc Energy Corporation · TSX:TRP
Tc Energy — Investor Presentation (April 2025)
33 slides from Tc Energy's investor presentation, April 2025
Slide 1: TC Energy Shareholder outreach
TC Energy Shareholder outreach RESPONSIBLE INVESTMENT AND SHAREHOLDER S T E WA R D S H I P E N G A G E M E N T APRIL 2025
Slide 2: Forward-looking information and non-GAAP/supplementary financial measures
TC ENERGY Forward-looking information and non-GAAP/supplementary financial measures This presentation includes certain forward-looking information, including future oriented financial information or financial outlook, which is intended to help current and potential investors understand management’s
Slide 3: Focused natural gas and power company
TC ENERGY Focused natural gas and power company Aligned with growth opportunities underpinned by wide-scale electrification 93,700 km 3 countries +6,500 MW(1) Key facts Incumbent positions in key The only company delivering Nuclear power generation providing natural gas supply and demand natural gas
Slide 4: Our 2025 strategic priorities
3 I N V E S TO R D AY TC ENERGY 2024 Our 2025 strategic priorities Purpose Maximize the value of our assets through safety and operational excellence We are proud to connect the world to the energy it needs Promote safe operating practices to exceed safety targets and maximize the availability of as
Slide 5: Our sustainability commitments
TC ENERGY Our sustainability commitments Taking a long-term view to managing our interactions with the environment, stakeholders, and rights-holders Embracing the energy transition Committed to safe, reliable, sustainable Fostering mutually beneficial relationships Contribute to global efforts to ad
Slide 6: Sustainability disclosure
TC ENERGY Sustainability disclosure 2024 Report on Sustainability Report on Reliability of Methane Emissions Disclosure Report on Climate-related Lobbying Third-party limited assurance report CDP Corporate Questionnaire Response Reconciliation Action Plan Update Forced Labour and Child Labour Report
Slide 7: Safety is our number one value
TC ENERGY Safety is our number one value Safety excellence drives operational excellence, translates to strong financial performance Our commitments: Committed to safe, reliable, Continuous safety Focus on sustainable operations improvement mental health Systematically manage risk to continuously Co
Slide 8: Embracing energy transition
TC ENERGY Embracing energy transition Contribute to global efforts to address climate change and manage the risks and opportunities of the energy transition Re-assessing interim GHG reduction target(1) Methane intensity reduction metric included in three-year vesting performance share units for exec
Slide 9: Natural gas plays an important role in power sector emissions reductions
TC ENERGY Natural gas plays an important role in power sector emissions reductions Natural gas can displace higher emitting fuels, domestically and globally through LNG U.S. power sector emissions GHG emissions in Alberta’s Variation in fuel use for power reductions(1) electricity sector(2) generati
Slide 10: Bruce Power – a world class nuclear generation facility
TC ENERGY Bruce Power – a world class nuclear generation facility 48.3% ownership +6,500 MW gross generating capacity(1) Low 90% average availability(2) Safe, reliable, non-emitting, baseload power generation Bruce Power site; Ontario, Canada Solid growth Low risk Repeatable performance Non-emitting
Slide 11: Leverage and enhance capabilities for lower-carbon growth
TC ENERGY Leverage and enhance capabilities for lower-carbon growth Positioning TC Energy for a lower carbon future by: Building internal capabilities in technologies adjacent to our core Natural Gas Pipelines business Enhancing and preserving value of Pilot development & venture investments existin
Slide 12: Managing climate-related risks
TC ENERGY Managing climate-related risks Transition Risks Physical Risks Strategy grounded Commercial and Incorporating climate- Building climate resiliency in fundamentals regulatory framework considerations Regularly reviewing our engineering standards to ensure assets continue to be designed and
Slide 13: Over 60% of sanctioned capital enabling energy transition
TC ENERGY Over 60% of sanctioned capital enabling energy transition Annual Capital Allocation Secured capital program(2) % of $25B ~$25 billion(1) Total spend program Decarbonizing our asset base Internally compete for capital dollars VR project, WR project Reliability and electrification projects $
Slide 14: TC Energy's primary emissions sources and main activities
TC ENERGY TC Energy’s primary emissions sources and main activities SCOPE 1 Stationary Natural gas-fired compressor engines power our natural gas transmission systems Combustion Natural gas-fired cogeneration units for SCOPE 2 production of electricity and heat energy Leaks from valves, fittings and
Slide 15: Managing methane emissions
TC ENERGY Managing methane emissions FUGITIVE VENTED EMISSIONS EMISSIONS TC ENERGY ABSOLUTE METHANE EMISSIONS REDUCTIONS(2) 2019 – 2023 Leak detection and repair program Reducing impacts of vented emissions Throughput Methane 4x/year at compressor stations in Canada Using mobile compression to recom
Slide 16: Fostering enduring, mutually beneficial relationships with Indigenous groups
TC ENERGY Fostering enduring, mutually beneficial relationships with Indigenous groups Board oversight and risk management Board of Directors maintains oversight of Indigenous engagement strategy, and risks and opportunities associated with material projects, including Indigenous equity opportunitie
Slide 17: Our vision is to be an industry leader in advancing reconciliation with Indigenous Peoples
TC ENERGY Our vision is to be an industry leader in advancing reconciliation with Indigenous Peoples 3,100 in-person meetings, over 50,000 communications and interactions, 120 in-person meetings with Wet’suwet’en Hereditary Chiefs The company spent over a decade on Signed long-term agreements with a
Slide 18: Leaving the environment as we found it
TC ENERGY Leaving the environment as we found it Safeguard habitat and biodiversity and minimize land use impacts, including restoring the environment to a condition equal to or better than we found it Understanding and mitigating environmental risks is built into Biodiversity mitigation hierarchy o
Slide 19: Furthering inclusion and equal opportunity
TC ENERGY Furthering inclusion and equal opportunity Strengthen collaboration and performance by promoting inclusion and equal opportunity across our organization and supply chain Executive Council & Chief Inclusion Officer Inclusion Champion program Employee-led inclusion networks Networks include
Slide 20: Cybersecurity and Artificial Intelligence
TC ENERGY Cybersecurity and Artificial Intelligence Robust enterprise security program with Board oversight Audit Committee maintains oversight of cybersecurity risks Quarterly reports to Audit Committee, periodic reports through ERM program Chief Security Officer Program aligned with best practice
Slide 21: Human rights practices
TC ENERGY Human rights practices As a committed participant in the UN Global Compact, TC Energy supports the Ten Principles of the UN Global Compact on human rights, labour environment and anti-corruption Employment Policies and Standards Training Community Engagement Includes topics related to dive
Slide 22: Excellence in governance and oversight
TT CC EE N N EE RR G G YY Excellence in governance and oversight(1) 13-member Board 92% independent with separate Board Chair/CEO roles Over 98% support for all Directors in 2024 Board Diversity Policy, including targets 38% women on Board Two racially or ethnically diverse Directors No board interl
Slide 23: Election of 13 nominated directors
TC ENERGY Election of 13 nominated directors 2024 Other public Name Committee members AGM result boards Scott Bonham, Director since 2024 — 2 Audit, Human Resources Cheryl F. Campbell, Director since 2022 99.08 1 Audit, HSSE Michael R. Culbert, Director since 2020 99.11 1 Audit, HSSE William D. John
Slide 24: Established sustainability governance
TC ENERGY Established sustainability governance Board of Directors Board of Directors Maintains oversight of business strategy alignment, Health, Safety, progress against most significant sustainability objectives Sustainability & Governance Human Resources and sustainability communications strategy
Slide 25: Appointment of auditor
TC ENERGY Appointment of auditor Auditor independence overview Audit Committee oversight 93% support for KPMG in 2024 All AC members are independent and financially literate Multiple overlapping controls to ensure auditor One member of AC is a designated financial expert under NYSE rules independenc
Slide 26: Approach to executive compensation
TC ENERGY Approach to executive compensation Executive compensation approach CEO realizable pay Averaging 96% approval for last three years 2024 realizable pay recognizes significant advancement of corporate Structured process overseen by Human strategy and achievement of 2024 key priorities Resourc
Slide 27: Shareholder rights plan
TC ENERGY Shareholder rights plan TC Energy’s Shareholder Rights Plan is designed to ensure that TC Energy Shareholders are treated fairly and provide the TC Energy Board with adequate time to identify, develop and negotiate alternative value maximizing transactions if there is a takeover bid for TC
Slide 28: Appendix
TT C C EE NNEERRGGYY 2 0 2 3 I N V E S T O R D A Y Appendix Non-GAAP reconciliations Appendix A: Comparable EBITDA Appendix B: Net Income (loss) to comparable earnings Appendix C: Adjusted Debt/Adjusted Comparable EBITDA (Debt-to-EBITDA) Appendix D: Segmented earnings and Comparable EBITDA 28
Slide 29: Appendix A – Non-GAAP reconciliations – Comparable EBITDA
Appendix A – Non-GAAP reconciliations – Comparable EBITDA(1) Three months Year ended (Millions of dollars) ended December 31 December 31 2024 2023(2) 2024 2023(2) Total segmented earnings (losses) 1,898 2,026 7,964 5,097 Interest expense (679) (777) (3,019) (2,966) Allowance for funds used during co
Slide 30: Appendix B – Non-GAAP reconciliations – Net Income (loss) to comparable earnings
Appendix B – Non-GAAP reconciliations – Net Income (loss) to comparable earnings(1) (Millions of dollars, except per share amounts) Three months ended Year ended December 31 December 31 2024 2023(2) 2024 2023(2) Net income (loss) attributable to common shares from continuing operations 1,069 1,249 4
Slide 31: Appendix C – Non-GAAP reconciliations – Adjusted Debt/Adjusted Comparable EBITDA
Appendix C – Non-GAAP reconciliations – Adjusted Debt/Adjusted Comparable EBITDA (Debt-to-EBITDA) Adjusted debt and adjusted comparable EBITDA are non-GAAP measures used to compute the debt-to-EBITDA multiple. Each of adjusted debt and adjusted comparable EBITDA measures does not have any standardiz
Slide 32: Appendix C – Non-GAAP reconciliations – Adjusted Debt/Adjusted Comparable EBITDA
Appendix C – Non-GAAP reconciliations – Adjusted Debt/Adjusted Comparable EBITDA(1) (Debt-to-EBITDA) (Millions of dollars) Year ended December 31 2024 2023 2022 Reported total debt 59,366 63,201 58,300 Management adjustments: Debt treatment of preferred shares(2) 1,250 1,250 1,250 Equity treatment o
Slide 33: Appendix D – Non-GAAP reconciliations – Segmented earnings and Comparable EBITDA
Appendix D – Non-GAAP reconciliations – Segmented earnings and Comparable EBITDA Comparable EBITDA(1) outlook from continuing operations (Billions of dollars) Canadian Natural Gas Pipelines U.S. Natural Gas Pipelines Mexico Natural Gas Pipelines Power and Energy Solutions Comparable EBITDA(1) (1) Co